|
|
Article: Governance during a Chapter 11 case. (includes related articles)
- Article from:
- Directors & Boards
- Article date:
- March 22, 1998
- Author:
CopyrightCOPYRIGHT 1998 Directors and Boards. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
Once a corporation becomes a Chapter 11 debtor, new considerations and forces relating to governance come into play.
The advent of mega-Chapter 11 cases during recent years is not surprising. Since the early 1980s, many major corporations faced with massive liabilities have resorted to Chapter 11 of the United States Bankruptcy Code as a means to deal with their business and financial problems, and particularly to contain their massive product liability exposure. Various approaches were tried to harness massive liabilities outside of bankruptcy, but without much success. A principal mechanism devised to address such problems was the simultaneous filing with a court ...